Cold winter drives economic growth via energy sector in Estonia

The ongoing cold weather has had a boosting effect on the economy so far, largely driven by increased electricity consumption and production, ETV news show “Aktuaalne kaamera” (AK) reported Tuesday night.

Tuesday morning had seen a consumption high for winter so far, and was only a little off the all-time record, while the increased production and higher electricity prices will affect economic growth positively at a time when the coronavirus pandemic has been making its effects known and where the preceding trend had been for a fall in electricity generation output.

Swedbank Chief Economist Tõnu Mertsina told AK that: “Electricity production had been sharply declining for a long time. At the beginning of last year, heat production also fell very sharply. So the comparison base is very low this year. explained Tõnu Mertsina, Chief Economist of Swedbank.

January 2021 six degrees colder on average than January 2020

Electricity consumption in January stood at 10 percent more than it had in the same month in 2020, during a much milder winter – average temperature in January 2020 was 3.1C compared with -2.9C this January – and also in the face of more people staying at home due to COVID-19 factors – though that has to be offset against a fall in commercial consumption.

Increased consumption has also meant Estonia has remained a net importer of electricity, primarily from neighboring Finland and Latvia, via the Nord Pool marketplace, a spokesperson told AK.

Read more: ERR.EE

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